Adjusting Customer Loyalty Programs to Drive Sales
March 23, 2021
Over the last year, small businesses adapted as consumers changed their shopping behaviors in response to Covid-19. With an emphasis on safety and convenience, customers demanded faster, easier, and safer purchasing options. Small businesses incorporated new technologies and strategies to meet these changing demands.
As e-commerce retailers continue to explore new tactics to retain customers, loyalty programs are an increasingly popular strategy. Recent surveys indicate that consumers are more likely to shop at businesses if they belong to their loyalty program. In fact, according to Bizrate Insights’ March 2021 survey, 60% of the 1400 respondents are currently participating in a loyalty or rewards program, with 22% increasing their loyalty program activity over the past year.
Loyalty programs strengthen the customer relationship by demonstrating just how much a retailer appreciates a customer’s patronage. Loyalty programs remain an effective sales driver, but it is essential to understand both the benefits and challenges of this type of strategy.
Loyalty programs strengthen the customer relationship by demonstrating just how much a retailer appreciates a customer’s patronage. In times of economic uncertainty, consumers can be easily influenced by price. Loyalty programs remain an effective sales driver, but it is essential to understand both the benefits and challenges of this type of strategy.
For example, simply improving your existing rewards programs can achieve a significant return on investment because you are building upon an approach that’s already proven successful.
Some of the most popular loyalty program perks include:
- free shipping
- redeemable reward points
Consumers also want a loyalty program that is free to join, easy to use and does not trigger voluminous marketing emails and other sales outreach.
While loyalty programs can be time-consuming and require testing and feedback (as well as organizational buy-in), many of these programs are well worth investing your company’s time and resources if the ROI can be quantified. Brand loyalty is powerful, and building those customer relationships pays dividends in the long run.
The right loyalty program accomplishes multiple goals. First, you are providing your customers with something they want and rewarding them for sticking with your business. At the same time, loyalty programs allow your organization to create a “feedback loop” that provides valuable information to help you fine-tune your offerings so that your customers continue to purchase your products and services.
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